Jefferies reiterated its Buy rating on CVS Caremark (NYSE: CVS) but lowered its price target from $52 to $50.

Jefferies noted, "While we recognize that the ESRX/WAG deal has taken some of the air out of the CVS story, the company's advantaged business model, significant cash flow, and solid management, suggest CVS is undervalued. Indeed, even though we have slightly lowered our FY13 forecast to account for some of the ESRX business returning to WAG, given the strength in the business, we would not be surprised if CVS exceeds our forecasts for FY12 & 13."